The primary function of Distribution Requirements Planning is to determine the need to replenish finished goods inventory at branch warehouses. True or False?

• A. True
• B. False
• C. It schedules production at plants
• D. It calculates supplier lead times

Answer: (A)

Distribution Requirements Planning is about moving finished goods through the distribution network and deciding when and how much to replenish at branch warehouses to meet customer demand. It takes demand signals, current inventory at each location, and the time it takes to move goods between locations to create a time-phased replenishment plan for every branch. This focus differentiates it from plant production scheduling (handled by MRP) and from simply calculating supplier lead times; those inputs feed the DRP, but the main purpose is to determine how much finished goods to send to each branch and when.